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Women and Sports 261 Chapter 8 SAEED KHAN/Getty Images Women and Sports Can Markets Explain Differences in Outcomes for Women and Men in Sports? To answer this question, Chapter 8 will explore the following: 1. The Demand for Women’s Sports: Traditionally, economists focus exclu- sively on supply and demand to explain outcomes in a market. But women’s sports highlight how much public policy and historical perceptions drive the outcomes we observe. 2. Wages Paid in Women’s Sports: The gap between the wages paid to women and men has been well documented outside of sports. Inside of sports, we also see such a gap in professional basketball. In addition to exploring this gap, this chapter will discuss the process by which wages are paid in women’s sports. 3. Leadership in Women’s Sports: Women are leaders of firms, universities, and nations. But in sports, women only seem to lead women’s sports teams. It is very rare to see a woman lead a men’s team. In contrast, men are often hired to lead women’s teams. This suggests that many believe men are bet- ter leaders than women. The data in women’s sports allow us to test this idea, a test that reveals no evidence of men and women having different leadership abilities. Copyright ©2018 Worth Publishers. Distributed by Worth Publishers. Not for redistribution. 09_BER_46412_ch08_259-290_PP3.indd 259 8/31/17 1:04 PM 260 Sports Economics Historically, sports have been played mostly by men. In 1971, 3.7 million boys played high school sports, while fewer than 300,000 girls did. The girls who played in high school had limited opportunities to continue doing so after gradua- tion. In 1970, there were just 2.5 women’s teams per school in the National Colle- giate Athletic Association (NCAA); across all colleges, only about 16,000 women played sports.1 And for the few women who got to play college team sports, their career almost always ended with their college graduation. The professional team sports leagues we see today in women’s sports did not exist. Forty years later, these numbers are quite different. As of 2013, there were 4.49 million boys playing high school sports and 3.2 million girls. So while boys’ participation had increased by 21%, the participation rate among girls had increased by 966.7%. And upon high school graduation, many of these girls now find opportunities in college. In 2014, there were over 200,000 women playing college sports.2 When these women leave college, some will find opportunities to play professionally. Women are now paid to play in a variety of sports: the Wom- en’s National Basketball Association (WNBA), National Women’s Soccer League (NWSL), National Women’s Hockey League (NWHL), and National Pro Fastpitch (NPF). What explains these changes? The go-to explanation economists turn to is “market forces.” If we follow that story, then in 1970, very few women and girls were interested in playing sports. And soon afterward, demand for sports changed dramatically and suddenly many women and girls loved sports. Obviously, that story is somewhat ridiculous. A more plausible explanation begins with Title IX. Title IX is an amendment to the Civil Rights Act of 1964. Initially, the Civil Rights Act focused on discrimination with respect to race, color, religion, and national origin. But in 1972, the following was added: “No person in the United States shall, on the basis of sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any educational program or activity receiving federal financial assistance.”3 Although Title IX does not explicitly mention sports, its impact on sports is clear. Zimbalist (2001)4 noted that female participation in sports changed dra- matically after the amendment was signed into law by President Richard Nixon. In 1971, 294,015 girls participated in high school sports. In 1973, this number 1R. Vivian Acosta and Linda J. Carpenter, “Women in Intercollegiate Sport: A Longitudinal, National Study, Thirty-Seven-Year Update, 1977‒2014.” Unpublished manuscript, 2014. Available at http://www.acostacarpenter.org. 2Acosta and Carpenter (2014). 3A discussion of the Civil Rights Act of 1964 and the specifics of Title IX can be found in Susan L. Averett and Sarah M. Estelle, “The Economics of Title IX Compliance in Intercollegiate Ath- letics, in Eva Marikova Leeds and Michael Leeds (eds.), Handbook on the Economics of Women in Sports (Cheltenham, UK: Edward Elgar, 2013). 4Andrew Zimbalist, Unpaid Professionals (Princeton, NJ: Princeton University Press, 2001). Copyright ©2018 Worth Publishers. Distributed by Worth Publishers. Not for redistribution. 09_BER_46412_ch08_259-290_PP3.indd 260 8/31/17 1:04 PM Women and Sports 261 increased to 817,073; by 1978, it was 2.08 million. Zimbalist (2001) observed a similar pattern at the college level. In 1971, only 31,852 women played college sports. By 1977, that number increased by more than 100% to 64,375. The story of Title IX indicates that it takes more than market forces to explain women’s sports. What appears to matter is the existence of opportunity. A brief story from the history of soccer further illustrates this point.5 There is evidence that women were playing soccer in the 19th century. In 1881, the Glasgow Herald reported on a match between teams of women from Scotland and England. In 1895, the British Ladies’ Football Club (soccer club) was founded. During World War I, women’s soccer in England took off. And the popularity of women’s soccer didn’t end when the war concluded in 1918. In 1920, 53,000 fans turned up to watch a women’s soccer match (with another 14,000 report- edly turned away). Such demand exceeded what was typical for men’s soccer at the time. Although market forces seemed to indicate that women’s soccer was eco- nomically viable, opportunity for this sport to grow was soon eliminated by non-market forces. In December 1921, the English Football Association (FA) declared that football was “quite unsuitable for women and not to be encour- aged.” Coaches and referees were told they would lose their licenses if women’s games were allowed on men’s fields. Yes, women’s soccer was banned. And that ban stayed in place in England until 1972.6 The story of Title IX illustrates how government can create opportunity. And the actions of the English FA in 1921 illustrate how a governing body can take away that opportunity. Both stories highlight that we need to do more than just appeal to “market forces” in explaining why something does or does not happen. 8.1 The Lesson Learned — and Not Learned — from Demand Data In 2016, the average WNBA team saw 7,655 fans at each game.7 Meanwhile, the average National Basketball Association (NBA) team in 2015‒16 managed to attract 17,864 fans.8 The market has thus spoken. Women’s professional basket- ball is not as popular as men’s professional basketball. 5Amanda Coletta, “A League of Their Own: The Most Dominant Soccer Team in 1920 Was Full of Female Factory Workers,” The New York Times, June 5, 2015, http://nytlive.nytimes .com/womenintheworld/2015/06/05/a-league-of-their-own-the-most-dominant-soccer-team- in-1920-was-full-of-female-factory-workers/. 6Coletta (2015). 7http://www.wnba.com/news/record-breaking-attendance-five-years-digital-social-retail/. 8http://www.insidehoops.com/attendance.shtml. Copyright ©2018 Worth Publishers. Distributed by Worth Publishers. Not for redistribution. 09_BER_46412_ch08_259-290_PP3.indd 261 8/31/17 1:04 PM 262 Sports Economics Once again, we need to work a little bit harder to draw a conclusion. Let’s start with a bit of history. The WNBA was founded in 1997. With the conclusion of the 2016 season, the league has only existed for 20 years. The NBA began as the Basket- ball Association of America (BAA) in 1946‒47.9 The league’s 20th season occurred in 1965‒66. That season the Boston Celtics, led by the league’s most valuable player (MVP) Bill Russell, won the NBA title. Wilt Chamberlain led the league in points, rebounds, and field goal percentage. NBA fans also were able to witness the talents of All-NBA players like Oscar Robertson, Jerry West, and Rick Barry. Despite this talent, though, the average team only drew 6,019 fans per game.10 To illustrate the popularity of the NBA around this time, in March 1962, Chamberlain scored 100 points in a game for the Philadelphia Warriors. This is a mark that has never been matched in NBA history. It was also a game that few peo- ple saw. The game took place in Hershey, Pennsylvania, nearly 100 miles outside of Philadelphia. The reported attendance was only 4,124.11 The NBA’s lack of popularity early in its history was not unusual. In base- ball, the National League (NL) came into existence in 1876. In 1895, the aver- age team only drew 3,690 fans per game.12 Six years later, the American League (AL) started to play. Twenty years into its history, the average AL team attracted 7,968 fans per game.13 A similar story can be told about the National Football League (NFL). In 1941, the average NFL team played before 20,157 fans, about 30% of the gate an average NFL team sees today.14 Early in a league’s history, attendance appears to be relatively low. Atten- dance is clearly not a function of only one factor.15 But one factor that does seem important early on is familiarity — how familiar the media and fans are with the teams and players in a league.
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